American Retirement Corp. Leases 2 Alabama Continuing Care Communities

NASHVILLE, TN-American Retirement Corp. of Nashville has acquired a leasehold interest in two Alabama retirement communities from CNL Retirement Properties Inc.

The properties — The Somerby at University Park in Birmingham and The Somerby at Jones Farm in Huntsville — have a combined 533 units, including 378 independent living units, 132 assisted living units and 28 Alzheimer’s care units. CNL recently acquired the two continuing care retirement communities for $72 million after paying $3 million for a purchase option held by American Retirement, which has managed the properties since their completion in 1999.

CNL acquired the properties from the developer, an affiliate of Birmingham-based Daniel Corporation. Daniel Corp. joint ventured with American Retirement in the 15-year master lease of the properties, which includes two 10-year extension options and an option for American Corp. to purchase the properties in nine years. American Retirement’s SVP of Strategic Planning Ross Roadman tells GlobesSt.com that Daniel Corp. is a “passive partner” whose leasehold interest American Retirement will buy out over the next five years for an undisclosed fixed amount.